AMFI ranks stocks on the basis of mcap for mutual funds
Post the instructions of SEBI on scheme consolidation, AMFI ranked stocks on the basis of their market capitalization for mutual funds. According to AMFI, the large cap stocks are 1st to 100th companies in terms of full market capitalization. The organisation ranked 5,250 stocks, categorising about 100 stocks as large caps, 150 mid caps and the other as small cap.
In a list issued by AMFI, the organisation stated that SEBI has defined large cap, mid cap, and small cap companies in order to ensure uniformity of investment universe for equity mutual fund schemes. SEBI also stipulated that AMFI should prepare the list of stocks in this concern.
AMFI has prepared the list of stocks, in consultation with SEBI and Stock Exchanges and on the basis of the data provided by Bombay Stock Exchange (BSE), National Stock Exchange (NSE) and Metropolitan Stock Exchange of India (MSEI).
According to the list, Reliance Industries, Tata Consultancy Services, HDFC Bank, ITC and Housing Development Finance Corp are the top large cap companies in terms of market capitalisation for mutual funds. Likewise, Colgate-Palmolive, MRF, Steel Authority of India, Procter & Gamble and Emami are the top five companies in the mid cap segment and, V-Guard, L&T Technology, Hexaware Technologies, Suzlon Energy and Asahi India Glass are the top stocks in the small cap segment.
The market capitalization is defined as the value of the company on the stock market, calculated from the multiplication of the total number of shares divided by the current share price.